CloudKitchens

CloudKitchens is a Los Angeles-based company that operates ghost kitchens and develops related technology. The company was founded in 2016 and was later acquired by Uber's cofounder Travis Kalanick. The company provides commercial kitchen spaces restaurants focused on food delivery, including production kitchens, CPG, meal prep, food prep, catering, and others, repurposing underutilized real estate and providing software to manage online orders.[1][2]

History

CloudKitchens was established in 2016 by entrepreneurs Diego Berdakin and Sky Dayton, with its first facility in Los Angeles, California.[3][4] In 2018, Travis Kalanick, cofounder of Uber, acquired a controlling stake in CloudKitchens' parent company, City Storage Systems, for approximately $150 million and became CEO.[5][6] John Curran, a former executive at Amazon, was appointed Chief Financial Officer (CFO) in 2021.[7]

The company secured significant funding, including $400 million from Saudi Arabia's Public Investment Fund in 2019 and $850 million in 2021 in a round that included Microsoft.[7][8][9] By 2019, the company was valued at approximately $5 billion, growing to an estimated $15 billion by 2021.[7]

CloudKitchens expanded to multiple countries, acquiring London-based FoodStars in 2019, followed by acquisitions in Latin America including Mexico-based Nano and Colombian company Cocinas Ocultas.[10][11][12] The increase in food delivery during the COVID-19 pandemic also contributed to the company's growth.[4]

By 2022, CloudKitchens had acquired around 40 properties in 24 cities, with expenditures exceeding $130 million, and employed over 4,000 individuals worldwide.[13][12] In different regions, it operates under local brand names, such as Kitchen Central in Brazil.[12]

CloudKitchens maintained limited public communications for several years.[14] In 2024, Kalanick broke that trend and publicly presented a concept referred to as the Internet Food Court, aiming for delivery times under 15 minutes through automation.[15] This system targets dense urban areas and workplace districts.[16] By this time, CloudKitchens reported operating hundreds of kitchen units in different countries.[15][7]

In 2022, Kitchen United raised $100 million in an attempt to compete with CloudKitchens.[17] Kitchen United eventually exited the competition, selling its real estate assets in late 2023.[18] Another competitor, salad chain Mixt, sued CloudKitchens in 2024 for re-selling their products.[19][20]

In 2023, CloudKitchens closed several sites and laid off workers to reduce costs.[21]

The IPO for the company's Middle East unit was planned in mid 2025,[22] but subsequently delayed in December 2025.[23]

Operations

Notable Collaborations

CloudKitchens builds ghost kitchens and other real estate for established chains such as Sweetgreen,[40] The Halal Guys,[41] Chick-fil-A,[42] Wendy's,[42] and Burger King.[42]

Lobbying

CloudKitchens has been linked to lobbying activities in the United States through the Digital Restaurant Association (DRA), an organization established in 2022 with support from Tusk Holdings, a consulting and investment firm led by Bradley Tusk, an early investor in Uber and associate of Kalanick.[43][44] The DRA advocates for regulatory changes affecting the food delivery industry, including legislation that would require third-party delivery platforms such as DoorDash, Uber Eats, and Grubhub to share customer data with restaurants.[43] The organization has also supported proposals to cap the commissions charged by these platforms to restaurant members.[44] Supporters argue that these measures could improve transparency and help restaurants better engage with customers. Critics, however, have raised concerns about consumer privacy and the implications of data sharing with smaller businesses that may lack advanced data protection infrastructure.[43]

External links